Lycos, Inc. v. Tivo, Inc.

499 F. Supp. 2d 685, 2007 U.S. Dist. LEXIS 57027, 2007 WL 2234743
CourtDistrict Court, E.D. Virginia
DecidedAugust 3, 2007
DocketAction 2:07cv003
StatusPublished
Cited by20 cases

This text of 499 F. Supp. 2d 685 (Lycos, Inc. v. Tivo, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lycos, Inc. v. Tivo, Inc., 499 F. Supp. 2d 685, 2007 U.S. Dist. LEXIS 57027, 2007 WL 2234743 (E.D. Va. 2007).

Opinion

OPINION AND ORDER

REBECCA BEACH SMITH, District Judge.

This is a patent infringement action filed by plaintiff Lycos, Inc. (“Lycos”), against defendants TiVo, Inc. (“TiVo”), Netflix, Inc. (“Netflix”), and Blockbuster, Inc. (“Blockbuster”). This matter comes before the court on the defendants’ motion to transfer venue. For the reasons set forth herein, the defendants’ motion to transfer venue is GRANTED, and this action is transferred to the United States District Court for the District of Massachusetts.

I. Factual and Procedural History

A. Procedural History

On January 3, 2007, Lycos filed this patent infringement action against TiVo, Netflix, and Blockbuster. In its complaint, Lycos alleges that the defendants made, used, offered for sale, sold, and/or imported products, methods, and/or systems covered by U.S. Patent Number 5,867,799 (“the '799 patent”) and U.S. Patent Number 5,983,214 (“the '214 patent”), which are owned by Lycos and relate to “information filtering technology.” Lycos further alleges that the defendants induced others to infringe these patents and that the defendants committed contributory acts of infringement.

Although Lycos filed this patent infringement action on January 3, 2007, the defendants were not served with the complaint until April 30, 2007. In the interim, the parties held settlement discussions. In a letter dated January 29, 2007, counsel for Lycos indicated that “Lycos believes Blockbuster’s recommendation system, *688 which is powered by ChoiceStream, directly implicates [Lycos’s patents].” Defs.’ Mem. of Law in Supp. of Mot. to Transfer, Rusnak Deck, Ex. 9. Consequently, on April 30, 2007, ChoiceStream filed a declaratory judgment action against Lycos in the United States District Court for the District of Massachusetts. In ChoiceS-tream’s complaint, it asserts that the '799 patent and the '214 patent are invalid and not infringed.

On June 12, 2007, the defendants in this action filed the instant motion to transfer venue, in which they ask this court to transfer this action to the District of Massachusetts. On June 22, 2007, each of the defendants filed an answer asserting, like ChoiceStream, that the '799 patent and the '214 patent are invalid and not infringed. On July 2, 2007, the court received Lycos’s opposition to the motion to transfer venue. On July 13, 2007, the court received the defendants’ reply to Lycos’s opposition. The matter is now ripe for review.

B. Relevant Facts

TiVo is a Delaware corporation with its principal place of business in California. TiVo sells digital video recorders (“DVRs”) and corresponding services to customers throughout the United States. Its customers use TiVo’s DVRs and services to find and digitally record television programming, which can then be played back at the customer’s convenience. TiVo’s customers have access to a recommendation system that allegedly filters television schedules and recommends particular shows to users. The recommendation system was designed and developed in California.

TiVo electronically transmits television program guide information and software updates from California to the DVRs purchased by its customers. 1 Thus, although TiVo’s DVRs and services are purchased and used by consumers in the Commonwealth of Virginia, TiVo has no resources, such as servers, computers, documents, employees, or facilities, in Virginia. Its employees and documents relevant to this lawsuit are primarily located in California.

Netflix is also a Delaware corporation with its principal place of business in California. Netflix offers a subscription movie rental service. After a person subscribes to Netflix’s service, the subscriber can select movies he or she wishes to view on Netflix’s Internet website. Netflix then mails the subscriber digital video disks (“DVDs”) containing the selected movies. The DVDs are mailed from distribution centers located across the country. Net-flix also distributes movies by electronically transmitting them via the Internet to its subscribers. Its subscribers can access a recommendation service, which generates customized and personalized movie recommendations.

Netflix has subscribers in Virginia. However, Netflix’s online services were designed and developed in California, and it operates its website from California. Except for the resources used in transmitting movies electronically to its customers, all of the servers, processors, databases, and other resources used in the operation of Netflix’s online service are located in California. Netflix owns a single distribution system in Virginia, and it transmits movies electronically via the Internet and mails DVDs to subscribers from this location. Nineteen employees work at the distribution center, but none of these employees has knowledge relevant to this action. None of the documents possessed by Net- *689 flix that are relevant to this action is located in Virginia.

Blockbuster is a Delaware corporation' with its principal place of business in Texas. Blockbuster operates' an online subscription movie rental service that is similar to the online service operated by Netflix. Like Netflix, Blockbuster offers a recommendation system as part of its online subscription service. Blockbuster’s recommendation system is powered by software that was designed and developed by ChoiceStream, Inc, (“ChoiceStream”). ChoiceStream is a Delaware corporation with its principal place of business in Massachusetts. There are no relevant Blockbuster or ChoiceStream documents located in Virginia. Also, neither Blockbuster nor ChoiceStream has employees in Virginia who have knowledge relevant to this action. However, ChoiceStream has employees in Massachusetts who possess information relevant to this action, and Lycos has indicated that it “may need to take some discovery from Choi-ceStream.” Pl.’s Opp’n to Defs.’ Mot. to Transfer at 12.

Lycos has its principal place of business in Massachusetts. It was a Delaware corporation until 2004, when it reincorporated in Virginia. All of Lycos’s employees and facilities are located in Massachusetts.

The inventions claimed in the '799 patent and the '214 patent are derived from a common technical description. Dr. Andrew Lang (“Dr.Lang”) and Donald Kosak (“Kosak”) are the coinventors of both patents. Kosak is Lycos’s Chief Technology Officer and resides in. Massachusetts. Dr. Lang is not employed by Lycos. Dr. Lang resides in Massachusetts but spends half his time working in Pennsylvania.

Since the late 1980s, the Media Lab at the Massachusetts Institute of Technology (“the Media Lab”) has been conducting and publishing research in the area of information filtering technology. In rejecting some of the original claims of the '799 patent on the ground of obviousness, the U.S. Patent and Trademark Office (“PTO”) relied on a publication of a researcher at the Media Lab, along with two other prior art references. 2 The defendants assert that they “expect to require discovery of documents and witnesses at the Media Lab.” Defs.’ Mem. of Law in Supp. of Mot. to Transfer at 8.

II. Analysis

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499 F. Supp. 2d 685, 2007 U.S. Dist. LEXIS 57027, 2007 WL 2234743, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lycos-inc-v-tivo-inc-vaed-2007.